So the law should pre-empt what would occur, and be guided by probably the most efficient solution. The concept is that law and regulation usually are not as necessary or effective at helping people as lawyers and authorities planners imagine. Coase and others like him needed a change of strategy, to place the burden of proof for positive results on a authorities that was intervening available in the market, by analysing the costs of action.
His second main article, The Problem of Social Cost , argued that if we lived in a world without transaction prices, individuals would discount with each other to create the identical allocation of resources, whatever the means a court docket may rule in property disputes. Coase used the instance of a nuisance case named Sturges v Bridgman, where a noisy sweetmaker and a quiet physician were neighbours and went to court to see who should …